Mongolia Holdings, the Hertz Equipment Rental Corp. franchise in Mongolia has agreed to acquire Monroad LLC, one of the largest road construction and earthmoving companies in the country. Monroad offers a full range of construction services including heavy equipment rental, construction and maintenance of roads, bridges, railroad lines, drainage work, earthwork and flood protection dams.
Monroad counts the Mongolian government and Oyu Tolgoi LLC (Rio Tinto’s Turquoise Hill Mine) as two of its largest completed-project customers.
“This transaction marks a significant breakthrough for our 2016 business strategy,” said Brad Siniscalchi, president of Mongolia Holdings and a 23-year veteran of Hertz Equipment Rental. “Monroad’s existing facilities, capabilities and staff should significantly streamline and expedite the deployment of our Hertz Equipment Rental franchise operation in Ulaanbaatar, while potentially saving significant hard and soft launch costs. Mongolia Holdings will now possess a much wider array of capabilities necessary to meet growing demands for equipment and construction services, driven in part by international infrastructure development initiatives like ‘One Belt, One Road’ and mega-mining industry projects like Oyu Tolgoi.”
“Although it has not previously been our core focus, Monroad has operated an equipment rental business in Mongolia for many years,” added Tengis Garamgaibaatar, CEO of Monroad. “We plan to bring Monroad’s facilities, equipment, highly trained staff, equipment maintenance capabilities, logistics, market knowledge, reputation and enthusiasm to the deployment and build-out of Hertz Equipment Rental operations throughout Mongolia. The expanded platform makes us better prepared to tackle larger projects and to more aggressively execute the growth strategy of our existing road building and earthmoving operations.”
Michael Ussery, former U.S. ambassador and chairman of Mongolia Holdings said: “In addition to all the obvious benefits of this transaction, the consolidation of Monroad into Mongolia Holdings facilitates the assimilation of 15 years of market knowledge, experience and relationships, which cannot be easily replicated by other market participants. In addition, with the recent $4.4 billion refinancing announcement of Rio Tinto’s expansion of the Oyu Tolgoi mega-mine, it’s not unreasonable to expect greater economic growth for this exciting market, which, in turn could measurably increase demand for Monroad’s road construction and earthmoving services.”
